CFI Holdings expects sustained strong demand for its products in the retail segment this year driven by increased spending on farming, construction, and mining activities.

The diversified agri-business concern said the anticipated increase in demand would come despite the economic headwinds being experienced including surges in inflation and exchange rate issues.

Zimbabwe's month-on-month inflation rate in February 2022 was 7 percent, gaining 1,7 percentage points on the January 2022 rate of 5,3 percent while the year-on-year inflation rate for February 2022 stood at 66,1 percent from January's 60,6 percent.

The Reserve Bank of Zimbabwe has projected inflation to close the year at 35 percent and taken measures to stabilise the currency exchange rate and reduce inflation to low and sustainable levels in 2022.

However, the CFI holdings is pinning hopes on continued engagement between the relevant authorities, industry, and business players in safeguarding the economic progress attained in 2021.

"The board is encouraged by the positive trajectory the economy is on; and hopes that the on-going collaborative dialogue between Government, industry and other stakeholders will be maintained in order to safeguard business confidence and the significant economic achievements attained since the introduction of the auction system," CFI company secretary Mr Panganayi Hare said in a trading update for the first quarter to December 31, 2021.

The company has also made progress in resuscitating operations at its milling subsidiary, Victoria Foods after capitalising the unit in the course of the period under review.

Victoria Foods together with its sister company Agrifoods surfaced from judicial management placement in 2016.

This comes on the back of a 17 percent surge in sales volumes in the first quarter of the year to December 2021, which CFI Holdings attributed to "enhanced construction activities and payments of bonuses and salaries in foreign currency".

Resultantly there was a corresponding growth in revenue, which closed the quarter at 65,7 percent better than the prior comparable period at $5,25 billion in inflation-adjusted terms.

The growth in the company's volumes was also attributed to improved agriculture performance in 2021 and a surge in construction endeavours during the year.

However, the delay to the start of the 2021-22 rain season decelerated volume growth in the quarter under review.

The retail segment contributed 87 percent of the revenue a 10 percent decline from a 97 percent contribution made in the first quarter in 2020

As part of efforts to bolster the group's operations earlier this year, CFI Holdings said it would prioritise the construction of low-cost housing in Harare South in support of the Government's vision to curb the ballooning housing backlog and delivery of adequate housing by 2030.

CFI Holdings operates Victoria foods, Farm and City, Glenara estates, Langford estates, Suncrest, Agrifoods and Crest poultry.

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